Date Requested:February 15, 2013
Time Requested:03:43 PM
Agency: State Tax & Revenue Department
CBD Number: Version: Bill Number: Resolution Number:
2013R1238 Introduced HB2271
CBD Subject: NURSING FACULTY TAX CREDITS
FUND(S)
General Revenue Fund
Sources of Revenue
General Fund
Legislation creates:
Neither Program nor Fund

Fiscal Note Summary

Effect this measure will have on costs and revenues of state government.

     The stated purpose of this bill is to retain full-time nursing educators in the state by providing a tax credit up to $3,500 for full-time nursing faculty members. The bill sets for the criteria for the credit. The bill also grants rule-making authority to Tax Commissioner.
    
     Assuming that the tax credit would apply against Personal Income Tax, the provisions of this bill would reduce General Revenue collections by approximately $700,000 per year beginning in FY2015. Due to the lack of an internal effective date, this bill would not become effective until the 2014 Tax Year.
    
     Under the assumption that the State Tax Department would not be expected to evaluate the effectiveness of this proposed tax credit program, additional administrative costs to the State Tax Department associated with passage of this bill would be minimal.

Fiscal Note Detail
Over-all effect
Effect of Proposal Fiscal Year
2013
Increase/Decrease
(use"-")
2014
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 0 0
Personal Services 0 0 0
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 0
2. Estimated Total Revenues 0 0 -700,000
3. Explanation of above estimates (including long-range effect):
     The stated purpose of this bill is to retain full-time nursing educators in the state by providing a tax credit up to $3,500 for full-time nursing faculty members. The bill sets for the criteria for the credit. The bill also grants rule-making authority to Tax Commissioner.
    
     The bill allows tax credit of up to $3,500 for full-time nursing faculty members. There are approximately 272 West Virginia residents who are teaching full-time as nursing faculty at West Virginia higher education institutions with annual salary varying based on institutions and faculty positions. Assuming that the tax credit would apply against Personal Income Tax, the provisions of this bill would reduce General Revenue collections by approximately $700,000 per year beginning in FY2015. Due to the lack of an internal effective date, this bill would not become effective until the 2014 Tax Year.
    
     Under the assumption that the State Tax Department would not be expected to evaluate the effectiveness of this proposed tax credit program, additional administrative costs to the State Tax Department associated with passage of this bill would be minimal.


Memorandum
Person submitting Fiscal Note:
Mark B. Muchow
Email Address:
Roger.D.Cox@wv.gov
     The stated purpose of this bill is to retain full-time nursing educators in the state by providing a tax credit up to $3,500 for full-time nursing faculty members.
     § 30-7-2 refers to “Registered Professional Nurses” (R.N.). Registered Professional Nurses are licensed. Therefore, by inclusion of the word professional,” the intent appears to be Registered Nurses. However, inclusion of the word “licensed” could lead to confusion with “licensed practical nurses” (L.P.N.).
    
     While “full-time” faculty is to be defined by the faculty’s employer, no minimum length of time of teaching is required to receive the credit, all other requirements being met.
    
     May a faculty member who is hired and considered “full-time” by the educational institution begin teaching in December of tax year X, continue teaching into the next tax year (year X +1), cease teaching at the end of the first term of that year and still receive the tax credit for tax year X? Having worked in part of year X+1, does the faculty member qualify for the tax credit for tax year X+1 as well? If these outcomes are not intended, the bill needs clarification. Further, the bill has not fulfilled its stated intent of retaining full-time nursing educators.